U.K. Gilts May Not Shine on New QE

By

Richard Barley

Nov. 12, 2012 2:16 p.m. ET

For U.K. government-bond investors, the past few days have been perplexing.

On Thursday, the Bank of England called a halt on quantitative easing, and gilt prices fell as investors priced in a potentially extended pause to bond purchases. On Friday, the government said the central bank would hand over its accrued and future interest payments to reduce debt, a form of quantitative easing via the back door, and gilts rose again. But...